Why Coeur Mining Stock Popped Today
Key Points
Gold prices popped on Friday -- but are down 13% since before the Iran war began.
Coeur stock is down even more: 37%, but its growth prospects look lumpy.
Coeur Mining (NYSE: CDE) stock jumped 6% through 11:55 a.m. ET Friday after weak gold prices finally took a turn for the better this morning.
After tumbling over the past month and continuing to slip lower for most of the week, the price of gold finally jumped 4% in late morning trading.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
What's up with Coeur Mining stock going down?
The price of gold is down 13% since the day before the Iran war began, falling from $5,248 per ounce to just $4,560.80 today. Coeur Mining, which mines gold, has been hit much harder, losing a staggering 37% of its market capitalization over the same one-month period. This disparity in declines, however, is starting to attract attention from Wall Street analysts -- especially given the long-term prospects for gold price gains.
In a note yesterday, Wells Fargo forecast that gold prices that topped $5,600 in January could return to those levels -- and even rise more -- as the shiny metal resumes its historical role as a store of value and a safe haven in times of global unrest. Wells believes gold prices could close out 2026 trading between $6,100 and $6,300 an ounce -- and that depressed gold stock prices provide a "tactical" buying opportunity today.
What it means for Coeur Mining stock
I agree with the broad thesis -- but I'd still be cautious about Coeur. Although priced at only 18.6 times trailing earnings -- and even cheaper when valued on forward earnings -- analysts polled by S&P Global Market Intelligence seem to think Coeur is approaching the top of its earnings cycle.
Coeur earnings are forecast to nearly triple this year, but rise only 21% in 2027 -- then begin falling. Coeur may look cheap today -- but keep an eye on the long term.
Wells Fargo is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.